Latest news with #CapriHoldingsLimited
Fashion United
6 days ago
- Business
- Fashion United
Capri Holdings returns to profit in first quarter despite revenue decline
US fashion group Capri Holdings Limited exceeded expectations in the first quarter of the 2025/26 financial year. While the company experienced a significant decline in revenue, it reported a profit, unlike the same period last year, due to significantly lower costs. This is evident from the latest results released on Wednesday. In the first quarter, which ended on June 28, revenue from continuing operations – excluding contributions from the Versace brand, whose sale to fashion group Prada SpA was agreed in mid-April – amounted to 797 million US dollars. This represents a 6.0 percent decrease compared to the same period last year. Adjusted for exchange rate changes, revenue shrank by 7.7 percent. Cost reductions boost results Both brands remaining in the group's portfolio after the Versace sale experienced declines. Michael Kors' revenue decreased by 5.9 percent (7.3 percent currency adjusted) to 635 million US dollars. Jimmy Choo's revenue fell by 6.4 percent (9.2 percent currency adjusted) to 162 million US dollars. Due to significantly lower costs, the group increased its operating profit to 16 million US dollars, compared to 11 million US dollars in the prior-year period. Net profit attributable to shareholders totalled 53 million US dollars. In the prior-year quarter, the group had recorded a corresponding loss of 14 million US dollars due to losses from Versace. Net profit from continuing operations increased from five to 56 million US dollars. Group chief executive officer John Idol sees progress in strategic initiatives Chairman and chief executive officer John Idol viewed the results as confirmation of the strategic course. "We are encouraged by our first quarter results. Trends have steadily improved, resulting in both revenue and earnings per share exceeding our expectations," he said in a statement. "These results demonstrate the progress we are making in implementing our strategic initiatives to revitalise our luxury fashion houses. While it is still early, we are seeing initial signs that our strategies are working." In light of recent developments, management slightly raised its revenue forecast for the current 2025/26 financial year. It now expects revenue in the range of 3.375 to 3.45 billion US dollars. The earnings targets remained unchanged. The company continues to expect operating profit of approximately 100 million US dollars and diluted earnings per share between 1.20 and 1.40 US dollars. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
US' Michael Kors & Jimmy Choo see dip as Capri targets FY27 growth
American luxury group Capri Holdings Limited has reported a total revenue of $797 million, reflecting a decline of 6 per cent on a reported basis and 7.7 per cent in constant currency in the first quarter (Q1) of fiscal 2026 (FY26) ended June 28, 2025. This excludes the performance of Versace, which has been classified under discontinued operations following a $1.375 billion acquisition agreement with Prada SpA, expected to close in the second half of calendar year 2025, Capri Holdings said in a press release. Capri Holdings has reported revenue of $797 million in Q1 FY26, down 6 per cent, excluding Versace, which is under a $1.375 billion sale to Prada. Net income rose to $56 million. Michael Kors and Jimmy Choo saw revenue declines. FY26 revenue is projected at $3.37â€'$3.45 billion. The company aims to stabilise in FY26 and return to growth in FY27, focusing on Michael Kors and Jimmy Choo. The company reported a gross profit of $502 million, with a gross margin of 63 per cent, nearly flat compared to 63.1 per cent in the prior year. The operating income rose to $16 million from $11 million last year, improving the operating margin to 2 per cent. On an adjusted basis, the operating income of the group stood at $20 million, with an adjusted margin of 2.5 per cent, down from 3.7 per cent in the prior-year period. The company posted a net income of $56 million or $0.47 per diluted share, compared to $5 million or $0.03 per diluted share in Q1 FY25. The adjusted net income was $60 million or $0.50 per share, a notable increase from $18 million or $0.16 per share last year. Inventory levels increased by 10.8 per cent year-over-year to $779 million, driven by $50 million in planned early receipts and an additional $25 million impact from foreign currency exchange and tariffs. The company generated $20 million in cash flow from operations, spent $13 million in capital expenditures, and ended the quarter with $129 million in cash and $1.7 billion in total borrowings, resulting in net debt of $1.5 billion—unchanged from the prior year. Segment-wise, Michael Kors revenue fell by 5.9 per cent to $635 million, or 7.3 per cent in constant currency. It delivered a gross profit of $388 million with a margin of 61.1 per cent and operating income of $63 million, resulting in a 9.9 per cent operating margin. Jimmy Choo's revenue stood at $162 million, down 6.4 per cent on a reported basis and 9.2 per cent in constant currency. It posted a gross profit of $114 million, improving its gross margin to 70.4 per cent from 67.1 per cent last year. The brand's operating income was flat at $4 million, with a slightly improved margin of 2.5 per cent. 'We are encouraged by our first quarter results. Trends improved sequentially leading to both revenue and earnings per share that exceeded our expectations. This performance demonstrates the progress we are making as we execute against our strategic initiatives to energise our fashion luxury houses. While still early, we are beginning to see signs that our strategies are working,' said John D Idol, chairman and chief executive officer (CEO) at Capri Holdings. Looking ahead, Capri Holdings is expecting revenue between $3.37 billion and $3.45 billion in FY26, with operating income of approximately $100 million and net interest income ranging from $85 to $95 million. The effective tax rate is projected to be in the mid-teens, and diluted earnings per share (EPS) is forecast between $1.2 and $1.4. Michael Kors is expected to generate $2.80 to $2.875 billion in revenue with a high-single-digit operating margin, while Jimmy Choo is projected to earn $565 to $575 million in revenue but will operate at a negative mid-single-digit margin. For the second quarter (Q2) of FY26, Capri Holdings anticipates revenue between $815 million and $835 million, with a slightly positive operating margin. Net interest income is expected to be around $15 million and the tax rate approximately 40 per cent. EPS for Q2 is forecast between $0.10 and $0.15. Michael Kors is expected to contribute $685 to $700 million in revenue with a high-single-digit margin, and Jimmy Choo is projected to generate $130 to $135 million in revenue, maintaining a negative mid-single-digit margin. The outlook incorporates assumed tariffs ranging from 15 to 30 per cent on imports from key sourcing countries, including China, India, Vietnam, Cambodia, Bangladesh, Indonesia, and the European Union (EU), added the release. 'Looking ahead, with the Versace transaction is expected to close in the second half of calendar year 2025, we are focused on executing the strategic initiatives across our two iconic brands, Michael Kors and Jimmy Choo,' added Idol. 'We remain on track to stabilise our business this year while establishing a solid foundation for a return to growth in fiscal 2027.' Fibre2Fashion News Desk (SG)
Yahoo
29-05-2025
- Business
- Yahoo
Capri Holdings Limited (CPRI): A Bull Case Theory
We came across a bullish thesis on Capri Holdings Limited (CPRI) on Substack by Paul Cerro. In this article, we will summarize the bulls' thesis on CPRI. Capri Holdings Limited (CPRI)'s share was trading at $17.33 as of 21st May. CPRI's trailing and forward P/E were 5.74 and 23.75 respectively according to Yahoo Finance. A luxury apparel store, showcasing the high-end brand offerings. Capri Holdings (CPRI) recently announced the divestment of Versace to Prada for $1.375 billion—a notable step down from its 2018 purchase price but still a strategic win for investors betting on the deal. Despite the anticipated stock rally post-announcement, shares faltered due to the reintroduction of steep tariffs under Trump, particularly a 145% rate on Chinese goods, which significantly impacted sentiment around CPRI, whose Michael Kors and Jimmy Choo brands rely heavily on Asian manufacturing. Still, this tariff pressure is seen as unsustainable. The belief is that Trump will be forced to reverse course, either by market pressure—such as rising 10-year Treasury yields—or pushback from corporations, as was the case with his 90-day pause on electronics tariffs. Capri's now net-cash position, excluding operating leases, strengthens the investment case. Even after paying down $1 billion in debt, the company could still hold $250 million in cash, providing flexibility for reinvestment, buybacks, or further deleveraging. This financial pivot, paired with the sale of a loss-making segment, positions CPRI for re-rating—especially once tariff-related overhangs ease. While the core brands (KORS and CHOO) aren't the most exciting in isolation, the improved balance sheet and optionality create an attractive setup. Investors see a path for a 25%+ move from current levels once macro risks subside. With no imminent catalyst but strong structural improvements in place, the stock is viewed as a mispriced asset in the wake of temporary geopolitical noise, setting the stage for significant upside as clarity returns. Capri Holdings Limited (CPRI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held CPRI at the end of the fourth quarter which was 57 in the previous quarter. While we acknowledge the risk and potential of CPRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CPRI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
29-05-2025
- Business
- Yahoo
Capri Holdings Limited (CPRI): A Bull Case Theory
We came across a bullish thesis on Capri Holdings Limited (CPRI) on Substack by Paul Cerro. In this article, we will summarize the bulls' thesis on CPRI. Capri Holdings Limited (CPRI)'s share was trading at $17.33 as of 21st May. CPRI's trailing and forward P/E were 5.74 and 23.75 respectively according to Yahoo Finance. A luxury apparel store, showcasing the high-end brand offerings. Capri Holdings (CPRI) recently announced the divestment of Versace to Prada for $1.375 billion—a notable step down from its 2018 purchase price but still a strategic win for investors betting on the deal. Despite the anticipated stock rally post-announcement, shares faltered due to the reintroduction of steep tariffs under Trump, particularly a 145% rate on Chinese goods, which significantly impacted sentiment around CPRI, whose Michael Kors and Jimmy Choo brands rely heavily on Asian manufacturing. Still, this tariff pressure is seen as unsustainable. The belief is that Trump will be forced to reverse course, either by market pressure—such as rising 10-year Treasury yields—or pushback from corporations, as was the case with his 90-day pause on electronics tariffs. Capri's now net-cash position, excluding operating leases, strengthens the investment case. Even after paying down $1 billion in debt, the company could still hold $250 million in cash, providing flexibility for reinvestment, buybacks, or further deleveraging. This financial pivot, paired with the sale of a loss-making segment, positions CPRI for re-rating—especially once tariff-related overhangs ease. While the core brands (KORS and CHOO) aren't the most exciting in isolation, the improved balance sheet and optionality create an attractive setup. Investors see a path for a 25%+ move from current levels once macro risks subside. With no imminent catalyst but strong structural improvements in place, the stock is viewed as a mispriced asset in the wake of temporary geopolitical noise, setting the stage for significant upside as clarity returns. Capri Holdings Limited (CPRI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held CPRI at the end of the fourth quarter which was 57 in the previous quarter. While we acknowledge the risk and potential of CPRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CPRI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion United
28-05-2025
- Business
- Fashion United
Capri holdings slides deeper into loss zone in fourth quarter
The US fashion group Capri Holdings Limited also suffered significant sales losses in the fourth quarter of the 2024/25 financial year. In addition, the group reported a significantly higher loss. However, the figures, which the company published on Wednesday, were not quite as bad as analysts had expected in the run-up. The current quarterly report still includes the results of the Versace brand, the acquisition of which by the Italian fashion group Prada SpA is to be completed in the second half of the year. In mid-April, both companies agreed that the Prada Group would acquire the fashion house for around 1.37 billion dollars. Group sales fall by around 15 percent In the fourth quarter, which ended on March 29, Capri's group sales amounted to around 1.03 billion dollars. This corresponded to a decrease of 15.4 percent compared to the same period last year. Adjusted for exchange rate changes, revenues shrank by 14.1 percent. The significant decrease was due to losses at all group brands. Michael Kors' sales fell by 15.6 percent (currency-adjusted -14.4 percent) to 694 million dollars, while Jimmy Choo's revenues fell by 2.9 percent (currency-adjusted 1.5 percent) to 133 million dollars. Versace suffered a minus of 21.2 percent (currency-adjusted -19.7 percent) to 208 million dollars. Due to significantly lower costs, the group was able to reduce its operating loss, which had been 543 million dollars in the same quarter last year, to 116 million dollars. However, the net loss attributable to shareholders grew by 37 percent to 645 million dollars due to higher tax charges. Adjusted for special effects, the corresponding deficit was 581 million dollars, after an adjusted net profit of 50 million dollars had been recorded in the same quarter last year. Net loss for the full financial year amounts to more than one billion dollars Group sales for the full financial year were 4.44 billion dollars, a decrease of 14.1 percent compared to the previous year. The reported net loss of around 1.18 billion dollars was more than five times as high as in the previous year, when it was 229 million dollars. The group also published an initial outlook for the current 2025/26 financial year, which no longer includes Versace's results. According to this, management expects annual sales in the range of 3.3 to 3.4 billion dollars, an operating profit of approximately 100 million dollars and diluted earnings per share of between 1.20 and 1.40 dollars. Chief executive officer John Idol looks to future with 'optimism' Chairman and chief executive officer John Idol was confident about the future: 'The 2024/25 financial year was a difficult year for Capri Holdings, but as we start the 2025/26 financial year, we are optimistic about our future path,' he said in a statement. Despite the uncertainties arising from the development of global tariffs, the group will focus on its new strategic measures, which should lead to future growth. The company is still in an 'early phase' of its turnaround, but can already see 'positive signs' of the effectiveness of the strategy, Idol emphasised. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
